Secretary Speeches from November 2013http://www.commerce.gov/news/secretary-speeches/2013/11
Department of Commerce NewsenOpen for Business Event in Central Ohiohttp://www.commerce.gov/news/secretary-speeches/2013/11/18/open-business-event-central-ohio
<p class="press-release-header"><strong>AS PREPARED FOR DELIVERY</strong><br />Monday, November 18, 2013<br /><strong>CONTACT OFFICE OF PUBLIC AFFAIRS</strong><br />202-482-4883</p><p><strong>Commerce Secretary Penny Pritzker</strong><br /><strong>Open for Business Event in Central Ohio</strong></p><p><span>Thank you, Mike.</span></p><p>It is great to be here in Westerville and the Columbus area. The Buckeyes are having another great year – undefeated.&nbsp; Congratulations.</p><p>I want to thank everyone here at Lake Shore Cryotronics.</p><p>I took a tour and saw how your high-tech sensors are built…&nbsp;</p><p>And I also saw the hanging flags that represent your customers around the world.</p><p>This is the perfect place to talk about how the president and I are focused on supporting businesses and workers like you… as you drive innovation and competitiveness… strengthen our economy… and create even more jobs in this community.</p><p>When I came on board as Secretary four months ago, I hung a sign on the door to my office. It says, “Open for Business.”</p><p>To me, that simple phrase captures it all…&nbsp;</p><ul><li>… that we are focused on our most important customer – businesses in Amerca…</li><li>… that the Obama administration is partnering with the private sector as you continue to lead us to full economic recovery –<br />the president’s top priority since he took office in 2009.</li></ul><p>We have already come a long way:</p><ul><li>Our GDP has grown for 10 straight quarters…</li><li>The auto industry is profitable once again…&nbsp;</li><li>The housing market is coming back…</li><li>Exports are up $600 billion since 2009…</li><li>Our deficits have been cut in half…</li><li>And in the past 44 months, our businesses – led by people like you – have created 7.8 million jobs.</li></ul><p>While we need to put even more Americans back to work and lift incomes… this momentum shows that our firms are positioned – more than ever before – to take the lead in the global economy.&nbsp;</p><p>It is absolutely clear.&nbsp;</p><p>We are ready to compete.</p><p>America is Open for Business.&nbsp;</p><p>I have met hundreds of CEOs in recent months.&nbsp;</p><p>My question for all business leaders is simple: How can we continue to set the conditions for firms in the U.S. to grow and hire?</p><p>First and foremost, everyone agrees that the manufactured crises coming out of Washington must stop.&nbsp;</p><p>The shutdown and the debt-limit brinksmanship hurt our businesses, our economy, and job creation.</p><p>We cannot afford any more self-inflicted wounds.</p><p>Instead, we need to look at the ways that government can work closely with industry to set the stage for American businesses to thrive.</p><p>That is what I’d like to talk with you about today…</p><ul><li>investments we need to make here at home (in areas like infrastructure and innovation…)</li><li>the importance of fostering a strong workforce (through skills training and immigration reform…)</li><li>and ensuring our leadership in the global economy (through trade and investment…)</li></ul><p>First, we know we need to invest in infrastructure.&nbsp;</p><p>Under the president’s leadership, we have improved 350,000 miles of roads, 6,000 miles of rail, and 20,000 bridges.</p><p>However, our nation has deferred trillions of dollars in infrastructure investment.&nbsp;</p><p>In fact, the American Society of Civil Engineers gives our country a D+ grade for infrastructure.</p><p>With interest rates still low, we need to put more construction crews back to work building and modernizing our transportation hubs and links.</p><p>The long-term benefits are clear: more efficient movement of goods… stronger exports… and more competitive businesses overall.</p><p>Just as important, we must continue to build our digital infrastructure.</p><p>For our part, the Commerce Department has deployed more than 100,000 miles of broadband since 2009.&nbsp;&nbsp; This is bringing more opportunity to hundreds of rural and underserved communities in every corner of America.</p><p>Our country and the State of Ohio need it all – from bridges to broadband.&nbsp;</p><p>The president’s plan would invest $50 billion dollars – right now – in the backlog of maintenance projects. We call it “Fix-it-First.”</p><p>In addition, we believe that the private sector can play a stronger role in infrastructure investment.&nbsp;</p><p>We cannot wait any longer.&nbsp; We must unlock more capital for the infrastructure improvements that America needs now.</p><p>We also need to invest in R&amp;D and innovation.&nbsp;</p><p>I just announced that innovation is one of our new priorities at the Commerce Department as part of our Open for Business Agenda.</p><p>Lake Shore Cryotronics often works with scientists at the National Institute of Standards and Technology – part of the Commerce Department...</p><ul><li>Researchers at NIST collaborate with Lake Shore to build customized equipment for NIST labs...</li><li>NIST then uses that equipment to develop new standards and protocols – advances that benefit industry more broadly.</li></ul><p>The president understands that those partnerships are important.</p><p>And he understands that we need to invest more heavily in R&amp;D at places like NIST.&nbsp;&nbsp; In fact, he has called on Congress to double federal funding for R&amp;D.</p><p>But we can’t stop there.&nbsp;</p><p>We need even more public-private partnerships that drive innovation.</p><p>Let me give one example – the National Network for Manufacturing Innovation (N-N-M-I).</p><p>Our country’s top manufacturing CEOs and university presidents developed this idea.&nbsp;</p><p>They saw the potential of bringing together the best minds from academia, the private sector and government:</p><ul><li>to work on the most challenging opportunities…</li><li>to achieve more scientific breakthroughs…</li><li>and to translate those discoveries into marketable ideas.</li></ul><p>N-N-M-I institutes align a region’s assets around an emerging technology – a technology that will improve both WHAT we make and HOW we make it.</p><p>Already, we launched our first pilot institute here in Ohio – focused on 3D printing.</p><p>Columbus-based EWI is one of the partners.&nbsp; The Commerce Department awarded EWI $5 million dollars in September to test the properties of materials made through 3D printing.</p><p>Soon, the federal government will launch three more pilots in lightweight metals, power electronics, and digital manufacturing and design.&nbsp;</p><p>The president has called for up to 45 of these institutes, and he highlighted this proposal in Cleveland just last week.</p><p>I, personally, was on Capitol Hill last week with Senator Brown, who has introduced legislation along with Senator Blunt (of Missouri) to build this Network.&nbsp;</p><p>It was my first hearing before Congress as Secretary.&nbsp; I voiced the administration’s support for this bi-partisan proposal, which is gaining co-sponsors from both sides of the aisle.</p><p>These are cutting-edge technologies in which the United States must compete and lead.&nbsp;</p><p>Other countries are making major investments in manufacturing innovation…</p><p>To win the future, we need to lead the next wave of new industries and technologies – right here at home.</p><p>But all the best technologies in the world are worthless unless we have a workforce that can bring these cutting-edge products to market and work to continuously improve them.</p><p>Lake Shore clearly understands this.&nbsp; You have a highly educated and skilled workforce…</p><p>And you reach out to high school students to spark their interest in science and engineering, which is wonderful.</p><p>As the president said last week, “We’ve got to do everything we can to prepare our children and our workers for the competition that they’re going to face.”&nbsp;</p><p>I could not agree more.</p><p>Columbus 2020’s Comprehensive Economic Development Strategy asks this question:</p><p><em>“Can this region supply the long-term workforce needed to serve: existing businesses… new companies locating in the region… and<br />new, high-growth enterprises?”</em></p><p>This is the question that communities throughout the country should be asking themselves.&nbsp;</p><p>In my first four months as Secretary, the most common concern that I have heard from CEOs is finding workers with the skills they need to help their businesses grow.</p><p>The fact is, too many jobs are going unfilled at a time when millions of Americans are still looking for work.&nbsp;</p><p>We simply must make better connections between what businesses need… and what our training institutions provide.</p><p>For this reason, I just announced that – for the first time ever – the Commerce Department is making skills a top priority.&nbsp;</p><p>In coordination with the White House, the departments of Commerce, Labor, and Education are joining forces.&nbsp;</p><p>Together, we are exploring how to better align federal funding for workforce development to support demand-driven skills training.</p><p>For example, the Commerce Department will emphasize industry-led training for our partners in the Manufacturing Extension Partnership – which has a presence throughout the state of Ohio.</p><p>We want to hear how those centers are helping small manufacturers meet their workforce training needs.&nbsp; And we want to share the best practices they discover.</p><p>I have already met with many CEOs who are leading the way on this very issue.&nbsp;</p><ul><li>Some of them have partnered across their industry to address the skills gap.&nbsp;</li><li>Others are working with community colleges to develop curricula and broadly-recognized credentials.</li></ul><p>My team will continue to help operationalize and act on the best ideas that come from business communities like yours.&nbsp;</p><p>After all, a globally competitive economy requires a globally competitive workforce.</p><p>Let me mention one more area related to our workforce, because so many CEOs are speaking up and getting involved in this issue – immigration reform.&nbsp;</p><p>The fact is, about 40 percent of the Fortune 500 were started by first or second generation Americans. And nearly one-fifth of the U.S. workforce is foreign-born.</p><p>The immigration bill that passed the Senate will expand temporary and high-skilled immigration programs – programs that businesses need now.&nbsp;</p><p>Plus the bill provides a green card to masters and Ph.D. students who graduate with STEM degrees.</p><p>I know that Lake Shore has dozens of employees who hold advanced degrees.</p><p>It is mind-boggling to think that places like The Ohio State University can attract some of the world’s brightest students, give them a top-notch education, and then we force these potential innovators and job creators to leave.</p><p>That is unacceptable.</p><p>We need folks in Washington to wake up to the fact that we are in a global competition for talent.&nbsp;</p><p>Estimates show that immigration reform could create over 10,000 new jobs in Ohio next year and boost this state’s economy by nearly $1 billion dollars.&nbsp; This should be at the top of our to-do list.</p><p>I encourage you to make your voice heard on this issue.</p><p>Beyond making key investments… and investing in our workers… We must also continue to ensure America’s leadership in the global economy.&nbsp;</p><p>That is why another major priority of the Commerce Department’s Open for Business Agenda is trade and investment.&nbsp;</p><p>It is great to be at a company where over half of your sales are international.</p><p>I saw a news story from a few weeks ago with this headline “Central Ohio Business Making Inroads in Global Markets.”</p><p>That is good news.&nbsp; The story cited that goods and services exports out of Central Ohio have grown to over $9 billion… and job growth from exports has jumped 17 percent over the past 7 years in this region.</p><p>This is one of America’s top 50 export markets.</p><p>To build on that, Columbus 2020 has joined the Metro Export Initiative, which the Commerce Department launched with the Brookings Institution.</p><p>In that news article, Columbus 2020’s CEO Kenny McDonald made a great point.&nbsp;</p><p>He said the biggest challenge is developing an export culture –to help more companies understand how to enter global markets and be successful.</p><p>I agree completely.&nbsp; With 95 percent of consumer residing outside the United States, it is clear that trade must become a bigger part of the DNA of our economy.</p><p>Already, the president’s National Export Initiative – the NEI – has achieved impressive results…</p><ul><li>We hit a record $2.2 trillion dollars in exports last year, up $600 billion dollars from 2009.&nbsp;</li><li>Nearly 10 million U.S. jobs are now supported by exports, up 1.3 million since 2009.</li></ul><p>However, we are still a nation that under-exports.&nbsp; What that means is too few of our firms are selling goods and services into too few global markets.</p><p>That is why my team is gearing up to launch NEI 2.0.&nbsp; We want to help more communities become globally fluent.</p><p>Working closely with industry, we must answer several key questions…</p><ul><li>Over the past decade, small businesses’ contribution to our exports has grown from one-fourth to one-third. &nbsp;<ul><li>How can we continue to broaden our base of exporters?</li></ul></li><li>Some states and cities still think that their local economies will do just fine without looking abroad. &nbsp;<br /><ul><li>How can we help them realize – like you have – that exporting is critical not just to survive but to flourish?</li></ul></li><li>And, as our services sector thrives…<br /><ul><li>How can we build on America’s unique advantage to attract more travel and tourism?</li><li>And how can we expand the perception of Made in America from just a shipping container… to also include a businesswoman with a Passport, a briefcase, and a consulting contract?</li></ul></li></ul><p>NEI 2.0 will help answer these questions.</p><p>Also in regards to exporting, I am working to ensure strong enforcement of trade rules… and a level playing field for our workers…</p><p>And, as our country’s Chief Commercial Advocate, I am doing everything I can to open more doors for American goods and services.</p><p>For example, my team is working with the United States Trade Representative’s Office to deliver a high-standard Trans Pacific Partnership.&nbsp;&nbsp;</p><p>We envision TPP as the foundation for a broader free-trade pact throughout the Asia-Pacific region.</p><p>Also, Commerce Department officials went to Brussels last week for the second round of talks with the EU on the Transatlantic Trade and Investment Partnership – T-TIP.</p><p>Last year, America’s 20 free trade partners attracted 46 percent of American exports, even though they only represented 13 percent of global GDP…</p><p>Imagine our potential when the TPP and T-TIP link us with 33 more countries totaling over 60 percent of the world’s GDP.</p><p>Suffice it to say that companies like this will be busier than ever.&nbsp;</p><p>You might need to order more flags for your hallway here.</p><p>Of course, we should also focus on America’s unparalleled position to attract more inbound investment – another area where Columbus 2020 is leading the charge.</p><p>According to their estimates, about 39,000 people in Central Ohio get up and go to work each day at foreign-owned companies that have a presence here.</p><p>I believe that will grow – because we have entered a unique era of opportunity.&nbsp;</p><p>Global businesses want to be here in the United States because of our rule of law, our intellectual property protections, our stable financial markets, our universities, our strong consumer base, and the ingenuity of our people.</p><p>On top of that, key trends are working in our favor, such as low-cost and abundant energy – crucial to manufacturers that are thinking about expanding to a place like Ohio.</p><p>The president knew we needed to take full advantage of this moment when he launched SelectUSA at the Commerce Department in 2011.&nbsp;&nbsp;</p><p>Ever since then, SelectUSA has been working with foreign CEOs and economic development groups across the country to put even more deals in the pipeline.</p><p>In fact, just three weeks ago, 1,300 leaders from 60 countries converged on DC for the first-ever SelectUSA Investment Summit.&nbsp; I know that Columbus was well-represented at the “JobsOhio” booth on the exhibit floor which I visited.</p><p>The demand for our summit was overwhelming, and the demand to invest in the United States is deep.</p><p>We announced that we are expanding and enhancing SelectUSA to help even more businesses grow their presence here in America.</p><p>The feedback from the summit made it clear.&nbsp; SelectUSA provides a powerful bang for our taxpayers’ buck.</p><p>Today we are in a global competition for investments.&nbsp;</p><p>That is why Congress should fully fund SelectUSA.&nbsp;</p><p>The president had it right when he said: “When you bet on America, that bet pays off.”</p><p>Let me close with a commitment.&nbsp;</p><p>I will continue to speak up as the voice for business on all of the top priorities that affect our private sector…</p><ul><li>from infrastructure… and innovation</li><li>to skills… and immigration reform…</li><li>to trade and investment – areas I highlighted today.</li></ul><p>And I will not stop there.&nbsp; I will also call for:</p><ul><li>business tax reform to help our companies compete globally…</li><li>cutting red tape and reducing unnecessary regulatory costs wherever possible…</li><li>and providing more data from the federal government to help businesses make smart decisions – yet another key part of our Open for Business agenda.</li></ul><p>Yes, it is time to get things done.</p><p>We have an opportunity right now to work together to set the conditions for a vibrant, 21st century economy and the good jobs that come with it.&nbsp;</p><p>My department will be responsive, customer-focused, and outcomes-driven… And we will demand a strong return on investment just like Ohio businesses do.</p><p>That sign on my door is more than just a symbol.&nbsp;</p><p>I want everyone who steps in – from a CEO… to a foreign leader… to an intern – to know that sign reflects the core values of America’s businesses as well as the core values of this administration and our Department.</p><p>Yes, we are OPEN for BUSINESS. Thank you all.</p>Secretary SpeechesBusiness EconomyInfrastructureInnovationJobsNEINNMISelectUSATrade and investmentOffice of the SecretarySecretary of Commerce Penny PritzkerMon, 18 Nov 2013 19:00:00 +0000ksullivan@doc.gov16096 at http://www.commerce.govThe "Open for Business Agenda"http://www.commerce.gov/news/secretary-speeches/2013/11/14/open-business-agenda
<p class="press-release-header"><strong>AS PREPARED FOR DELIVERY</strong><br />Thursday, November 14, 2013<br /><strong>CONTACT OFFICE OF PUBLIC AFFAIRS</strong><br />202-482-4883</p><p><strong>Commerce Secretary Penny Pritzker</strong><br /><strong>Remarks at the "Open for Business Agenda"</strong></p>
<p>Thank you.&nbsp; It
is such an honor to be with so many business leaders as we roll out our
strategic vision and priorities for the Commerce Department.</p>
<p>And it is particularly great to be here at 1776,
which grew out of the president’s Startup America initiative. &nbsp;Here at 1776, revolutionary ideas are turned
into products, business plans, and companies. &nbsp;We can all feel the excitement and energy here
because of the vital guidance and support that organizations like 1776 provide
to budding entrepreneurs.&nbsp; Can everyone
give the 1776 community a round of applause?&nbsp;
</p>
<p>1776 is the perfect name for a place where start-ups
are launched.&nbsp; As America’s founding
entrepreneur, Benjamin Franklin, once said: “An investment in knowledge pays
the best interest.” &nbsp;That notion comes to
life here in a place where insight, ideas, and sweat equity result in new businesses…
and perhaps even new industries.</p>
<p>Many things have changed since 1776 – but our American
entrepreneurial spirit has remained steadfast.&nbsp;
</p>
<p>I, personally, have started several businesses.&nbsp; I have felt that energy and excitement – and
yes at times the fear – that comes with a start-up. </p>
<p>Since I came on board at the Commerce Department, I have
worked to foster that kind of environment where good ideas can rise to the top.&nbsp; Our 44,000 employees were already doing a
great job, but we started pushing for ways to make our work even more
meaningful, customer-focused, and outcomes-oriented.</p>
<p>On my first day, I hung a sign on the door to my
office that says, “Open for Business.”</p>
<p>To me, that simple phrase captures it all…&nbsp; It shows that we are focused on our most
important customer – business leaders like you and the conditions necessary for
your companies to grow.&nbsp; That sign also
shows that this administration is partnering with America’s private sector as
you continue to lead us to full economic recovery.</p>
<p>I truly believe – just like the President – that we
will only be successful with great corporate leadership.</p>
<p>The fact is, you have already brought us a long way
over the past four years.&nbsp; In 44 months, the
private sector – leaders like you in this room – has created 7.8 million jobs.&nbsp; </p>
<p>Our GDP has grown for 10 straight quarters… Our deficits
have been cut in half… Exports are up… and… The housing market is coming back.</p>
<p>And while we need to put even more Americans back to
work and lift incomes… this momentum shows that our businesses are positioned –
more than ever before – to take the lead in the global economy.&nbsp; </p>
<p>I know this first-hand, because over the past few
months, I have heard from hundreds of CEOs and business leaders.</p>
<p>It is absolutely clear.&nbsp; </p>
<p>We are ready to compete.</p>
<p>My question for business leaders is simple:&nbsp; How can the Commerce Department help set the conditions
for your success?</p>
<p>That is what I want to talk about today – three key
areas that are crucial components of our economic growth agenda.</p>
<ul><li>Trade – because our
businesses need access to more markets and more customers. </li><li>Innovation – because
our businesses need a strong digital economy… cutting-edge manufacturing and technology…
and a well-trained workforce to stay competitive.</li><li>And data –
because our businesses need access to more and better information to make smart
decisions and stay ahead.</li></ul>
<p>To expand on each of these areas, let me share my
journey of the past few months with you.</p>
<p>[TRADE
AND INVESTMENT]</p>
<p>In August, my listening tour took me to Houston, our
nation’s top metro area for merchandise exports at over <br />
$110 billion dollars last year.</p>
<p>As I toured the newest expansion of its port, I was
reminded that global trade has grown over 40 percent in just 4 years… millions
of people in developing countries are being lifted into the consuming class each
year… and… 95 percent of consumers reside outside the United States.</p>
<p>It is clear that the greatest commercial opportunities
for our firms in the 21<sup>st</sup> century will not only be here at home, but
also outside our borders.&nbsp; </p>
<p>Simply put, trade must become a bigger part of the
DNA of our economy.</p>
<p>Already, the President’s National Export Initiative
has achieved impressive results… </p>
<p>We hit a record $2.2 trillion dollars in exports
last year, up $600 billion dollars from 2009.&nbsp;
Nearly 10 million U.S. jobs are now supported by exports, up 1.3 million
since 2009.&nbsp; A record of nearly 14
percent of our GDP was driven by exports last year.&nbsp; And, in fact, some places like Kansas City attribute
their recovery almost entirely to increased exports. </p>
<p>However, we are still a nation that under-exports. &nbsp;What that means is too few of our firms are
selling goods and services into too few global markets.</p>
<p>That is why I have asked my team to take a fresh
look at the National Export Initiative.&nbsp; </p>
<p>This
new effort, NEI 2.0, requires government and industry to work closely together
to help businesses become more globally fluent.&nbsp;
</p>
<p>Together, we must answer several key questions…</p>
<ul><li>Over the past
decade, small businesses’ contribution to our exports has grown from one-fourth
to one-third. <em>&nbsp;How can we continue to broaden our base of
exporters?</em></li><li>Some states and
cities still think that their local economies will do just fine without looking
abroad. <em>&nbsp;How can we help them realize that exporting is
critical not just to survive but to flourish?</em></li><li>And, as our
services sector thrives… <em>How can we build on America’s unique advantage to
attract more travel and tourism? And </em><em>how
can we expand the perception of Made in America from just a shipping container…
to include a businesswoman with a Passport, a briefcase, and a consulting contract?</em></li></ul>
<p>NEI 2.0 will help answer these questions.</p>
<p>In addition, I will work to ensure strong
enforcement of trade rules… and a level playing field for our workers…</p>
<p>And, as our country’s Chief Commercial Advocate, I
will do everything I can to open more doors for American goods and services.</p>
<p>For example, I heard repeatedly on my listening tour
that we need more free trade agreements to open even more markets.</p>
<p>That starts with renewing Trade Promotion Authority.&nbsp; I plan to go to Capitol Hill and around the
country to make sure President Obama has this same authority given to previous
Presidents.</p>
<p>In addition, we will work with the United States
Trade Representative’s Office to deliver a high-standard Trans Pacific
Partnership.&nbsp; Our experts are working
around the clock with the 11 other TPP countries.&nbsp; &nbsp;We
envision TPP as the foundation for a broader free-trade pact throughout the
Asia-Pacific region.</p>
<p>Also, as I speak, members of my team are in Brussels
at the second round of talks with the EU on the Transatlantic Trade and
Investment Partnership – T-TIP. </p>
<p>Last year, America’s 20 free trade partners
attracted 46 percent of American exports, even though they only represented 13
percent of global GDP… Imagine our potential when these two new agreements link
us with 33 more countries totaling over 60 percent of the world’s GDP.&nbsp; Suffice it to say that the Port of Houston
will become busier than ever.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</p>
<p>Of course, we should also focus on America’s unparalleled
position to attract more inbound investment.&nbsp;
</p>
<p>We have entered a unique era of opportunity.&nbsp; Global businesses want to be here because of
our rule of law, our intellectual property protections, our stable financial
markets, our universities, our strong consumer base, and the ingenuity of our
people.</p>
<p>On top of that, key trends are working in our favor,
such as low-cost and abundant energy.</p>
<p>The President knew that we needed to take full advantage
of this moment when he launched SelectUSA at the Commerce Department in 2011.&nbsp; &nbsp;Ever
since then, SelectUSA has been working with foreign CEOs and our economic
development leaders across the country to put even more deals in the pipeline.</p>
<p>In fact, just two weeks ago, 1,300 leaders from 60
countries converged on DC for the first-ever SelectUSA Investment Summit.&nbsp; The demand for our summit was overwhelming,
and the demand to invest in the United States is deep.</p>
<p>We announced that we are expanding and enhancing
SelectUSA to help even more businesses grow their footprint here in America.</p>
<p>The feedback from the summit made it clear.&nbsp; SelectUSA provides a powerful bang for our
taxpayers’ buck.</p>
<p>Today we are in a global competition for
investments. &nbsp;That is why Congress should
fully fund SelectUSA.&nbsp; The President had
it right when he said: “When you bet on America, that bet pays off.”</p>
<p>From Houston, let’s go to Albany, New York, where I
went in July on my listening tour.&nbsp; </p>
<p>There, the semiconductor industry is thriving –
building the chips that go into our laptops and smartphones.</p>
<p>Albany reflects the importance of innovation in two
important ways.</p>
<p>First, the chips that are built there support our
digital economy.</p>
<p>I am sure that many of the startups here at 1776
have launched their businesses entirely online or through apps.</p>
<p>The fact is, as much as half of economic growth in
the United States is due to advances in science, technology, and business
processes.</p>
<p>The Commerce Department helps create broad
opportunities for entrepreneurship and continued growth in the digital economy.&nbsp; </p>
<p>For example, since 2009 we have laid 100,000 miles
of broadband across the country – linking small businesses and their customers
with high-speed Internet.</p>
<p>Looking forward, the Commerce Department will make
sure that American businesses have a strong voice at the table when it comes to
strengthening our digital economy.</p>
<p>We will fight to protect intellectual property
online… We will work to ensure there is robust cybersecurity for our
infrastructure, for industry, and for consumers…&nbsp; And we will champion a free and open Internet
throughout the world… while making sure that our companies are treated fairly.</p>
<p>In the months ahead, the Commerce Department will
develop a coordinated approach to these and other internet policies that affect
business.&nbsp; That is our commitment.</p>
<p>A second way in which Albany’s semiconductor
industry reflects innovation is through their unique model of collaboration.</p>
<p>Would-be-rivals are jointly engaging in pre-competitive
research.&nbsp; </p>
<p>This approach brings together the smartest minds from
academia, the private sector, and government… to work on the most challenging
opportunities… achieve more scientific breakthroughs… and then translate those
discoveries into marketable ideas. </p>
<p>Not surprisingly, the region is becoming a global
hub for semiconductor companies and their suppliers… attracting billions of
dollars in investment and thousands more jobs.&nbsp;
</p>
<p>Notably, the success of this model traces back to
the 1980s when the federal government made a major investment to ensure our long-term
competitiveness in this industry.</p>
<p>How can we replicate that kind of success through
future public-private partnerships?&nbsp; </p>
<p>Our country’s top manufacturing CEOs and university
presidents came up with an answer: the National Network for Manufacturing
Innovation.</p>
<p>NNMI institutes align many of a region’s assets to
support one emerging technology – a technology that will improve both WHAT we
make and HOW we make it…</p>
<p>Already, we launched a pilot institute for 3D
printing in Ohio.&nbsp; Soon, three more
institutes will be awarded in lightweight metals, power electronics, and <br />
digital manufacturing and design.&nbsp; These
are cutting-edge areas in which the United States must compete and lead.&nbsp; Our innovation-driven economy depends on it.</p>
<p>The competition for these institutes is fierce, and the
fact is, communities and industry are clamoring for us to help fund more of
these hubs. The President has called for up to 45 institutes. Importantly,
leaders from both parties in Congress have co-sponsored legislation to make
this network a reality.</p>
<p>Other countries are making major investments
in manufacturing innovation.&nbsp; To win the
future, we need to lead the next wave of exciting new industries and
technologies – right here at home.</p>
<p>But all the best technologies in the world are worthless
unless we have a workforce that can bring these cutting-edge products to market
and work to continuously improve them.</p>
<p>The most common concern that I have heard from CEOs is
their challenge of finding workers with the skills they need to help their
businesses grow.</p>
<p>The fact is, too many jobs are going unfilled at a
time when millions of Americans are still looking for work.&nbsp; </p>
<p>To help drive innovation in our economy, we simply
must make better connections between what businesses need… and what our
training institutions provide.</p>
<p>For that reason, for the first time ever, I am
pleased to announce that the Commerce Department is making skills a top
priority.&nbsp; </p>
<p>In coordination with the White House, the
departments of Commerce, Labor, and Education are joining forces.&nbsp; We are exploring how to better align federal
funding for workforce development to support demand-driven skills training.</p>
<p>For our part, the Commerce Department will emphasize
industry-led training when funding state-level partners who work with small manufacturers…We
will track those partners’ outcomes and share best practices throughout this
network – called the Manufacturing Extension Partnership.</p>
<p>In addition, our Economic Development Administration
will encourage grant applicants to incorporate local workforce needs in their
proposals.</p>
<p>Furthermore, we are going to take advantage of the
great minds on our National Advisory Council on Innovation and Entrepreneurship…
&nbsp;in which a key advisor to 1776, Steve
Case, has played a critical role. The Council will gather ideas on the best
ways to equip Americans for tomorrow’s jobs in high-growth industries.&nbsp; </p>
<p>Most importantly, I have already met with many CEOs who
are leading the way on this very issue.&nbsp; Some
of you have partnered across your industry to address the skills gap.&nbsp; Others are working with community colleges to
develop curricula and broadly recognized credentials.</p>
<p>My team will continue to help operationalize and act
on your best ideas.&nbsp; After all, a globally
competitive economy requires a globally competitive workforce.</p>
<p>[DATA]</p>
<p>Finally, let me turn to data. &nbsp;Let’s go west to Seattle where I visited
Amazon and other tech companies in September on my listening tour.</p>
<p>As you know, Amazon is a multi-billion dollar
business driven largely by data.&nbsp; We discussed
how they use “big data” to grow their business… and how the Commerce Department
can put more of our extensive data into the hands of entrepreneurs.</p>
<p>I know the value of this first-hand.&nbsp; My first startup 25 years ago was built with
the help of information from the Census Bureau.&nbsp;&nbsp; I needed to know how many seniors lived in
certain areas, their incomes, and much more.&nbsp;
Census data helped my team choose where to put our senior living
communities, launching a company that now has thousands of customers and thousands
of employees.</p>
<p>Since then, the need for timely, relevant, and
accessible data to make informed business decisions has grown exponentially.</p>
<p>It is already clear that government data is fertile
ground for business creation and market growth.</p>
<p>For example, each day, the National Oceanic and
Atmospheric Administration produces 2 terabytes of weather and climate data
that the public can easily use.&nbsp; Those 2
terabytes alone power a multi-billion-dollar industry – everything from the
Weather Channel to your smartphone weather apps.&nbsp; </p>
<p>Here is the opportunity: There are about 17
additional terabytes each day that go largely untapped.&nbsp; To put that in perspective, that is roughly
the printed collection of the Library of Congress… times two.</p>
<p>Today, we are taking the first steps to create a public-private
initiative to unleash more NOAA data.&nbsp; This
will help more entrepreneurs launch businesses using public information about our
oceans, climate, and weather.&nbsp; </p>
<p>Just as importantly, this will bolster our longstanding
Commerce Department priority of protecting our environment: This includes helping
communities adapt to climate change… developing
stronger resilience standards for buildings and infrastructure… and maintaining
world-class weather forecasting capabilities.</p>
<p>We can NOT stop there in our efforts to free up
data.</p>
<p>We will work throughout our Department, across
government, and with industry to make even more data standardized and easy-to-use.&nbsp; And if you have ideas for new data products
to better meet industry needs, we want to hear them.</p>
<p>One last point.</p>
<p>Data does NOT get a lot of attention until it is not
available.&nbsp; Americans were reminded of
this when the Commerce Department’s economic reports were delayed due to the
shutdown.</p>
<p>Businesses depend every single
day on the rich data we provide.&nbsp; &nbsp;</p>
<p>Suffice it to say that Congress
should continue to support the high-quality information that comes from the American
Community Survey… our satellites… and the 2020 Census which we are preparing for
now.</p>
<p>After all, as Ginni Rometty of IBM says,
“Information will be to the 21<sup>st</sup> century what steam, electricity and
fossil fuels were to prior centuries.”&nbsp;&nbsp; I
could not agree more.&nbsp; </p>
<p>Let’s make sure that both data and our
digital economy are fully empowering entrepreneurs and businesses in the years
ahead.</p>
<p>As we traveled to Houston, to Albany, to
Seattle – and everywhere in between – this new Open for Business Agenda was driven
by what I heard from leaders like you.</p>
<p>This agenda is a critical part of the
President’s overall effort to grow the economy and create jobs.</p>
<p>Let me be clear: I will continue to speak
up as the voice for business on all of the administration’s priorities that
affect our private sector.</p>
<p>This includes:</p>
<ul><li>business tax
reform to help our companies compete globally…</li><li>investing in
infrastructure to move our goods, information, and people…</li><li>immigration
reform which will strengthen our workforce, lower our deficit, and boost our
economy…</li><li>and, of course,
cutting red tape and reducing unnecessary regulatory costs wherever possible.</li></ul>
<p>Moreover, my team will work harder than
ever to break through unexpected roadblocks and distractions, including those
originating here in D.C.&nbsp; We can NOT
afford manufactured crises anymore.</p>
<p>Instead, it is time to get things done.</p>
<p>We have an opportunity right now to work
together to set the conditions for a vibrant, 21<sup>st</sup> century economy and
the good jobs that come with it.&nbsp; </p>
<p>My commitment is that my Department will
be responsive, customer-focused, and outcomes-driven… </p>
<p>And we will demand a strong return on
investment just like American businesses do.</p>
<p>That sign on my door is more than just a
symbol.&nbsp; </p>
<p>I want everyone who steps in – from a
CEO… to a foreign leader… to an intern – to know that sign reflects the core
values of America’s businesses as well as the core values of this administration and our Department.</p><p>
Yes, we are OPEN for
BUSINESS.&nbsp; I look forward to working with
you in the months and years ahead.</p>Secretary SpeechesBig dataBusiness InnovationListening TourManufacturingOpen for BusinessThu, 14 Nov 2013 16:45:00 +0000ksullivan@doc.gov16085 at http://www.commerce.govU.S. Secretary of Commerce Penny Pritzker Testifies on Strengthening Innovation and Manufacturing for a 21st Century Economyhttp://www.commerce.gov/news/secretary-speeches/2013/11/13/us-secretary-commerce-penny-pritzker-testifies-strengthening-inno
<p class="press-release-header"><strong> AS PREPARED FOR DELIVERY</strong><br />Wednesday, November 13, 2013<br /><strong>CONTACT OFFICE OF PUBLIC AFFAIRS</strong><br />202-482-4883</p>
<p>Chairman Rockefeller,
Ranking Member Thune, and members of the Committee, thank you for calling this
important hearing to examine the role of manufacturing hubs in a 21<sup>st</sup>
Century innovation economy.&nbsp; </p>
<p>I welcome the opportunity to
discuss a proposed National Network for Manufacturing Innovation (NNMI), and am
supportive of the approach in the bipartisan legislation recently introduced by
Senators Sherrod Brown and Roy Blunt on this topic.</p>
<p>The NNMI legislative
proposal would largely implement recommendations by the first Advanced
Manufacturing Partnership (AMP) Steering Committee, a task force of 12 leading
company CEOs and six university presidents, with input from 1,700 members of
industry and academia. Co-chaired by Dow CEO Andrew
Liveris and former Massachusetts Institute of Technology (MIT) President Susan
Hockfield, the AMP Steering Committee<em> </em>issued a report to the President
in July 2012 entitled <em>Capturing Domestic Competitive Advantage in Advanced
Manufacturing</em>. Among its findings was the need for a network of
manufacturing innovation institutes. These institutes would allow companies to
collaboratively invest in precompetitive research to tackle manufacturing
challenges they cannot address individually. The institutes would provide
companies, including small manufacturers, access to capital equipment and
facilities to conduct testing and research in order to accelerate to the market
new cutting edge technologies. A new generation of our manufacturing workforce
would be trained in an environment similar to a “teaching hospital” for
advanced manufacturing, where engineers, researchers, and workers are able to
gain new skills and capabilities working on state-of-the-art equipment and new
manufacturing challenges.&nbsp; </p>
<p>It is an exciting vision
that has been widely embraced. Just two weeks ago, the National Association of
Manufacturers (NAM) and other organizations including Semiconductor Equipment
and Materials International,
publicly announced that they are supporting this effort.&nbsp;
</p>
<p>Before elaborating on this
vision, I would first like to discuss the commercial problems these institutes
are meant to solve. As you know, I come to the Department of Commerce as a
business person, particularly sensitive to market demands. Many in private
industry have embraced the institute concept because they see a need for
industry leaders to collaborate on advanced technology challenges in order for
the United States to secure a competitive edge. Others believe it will spark economic
development in regions that have been hard-hit by previous recessions.&nbsp;
And these private sector leaders wholeheartedly endorse the Institutes as a
critical national investment to rebuild manufacturing capabilities and
strengths that have eroded over the last decade as manufacturing went offshore.
<span style="text-decoration: line-through;">&nbsp;</span></p>
<p>In fact, since 2001, the United States
has lost production across a range of advanced technology industries where the
United States had previously been dominant. This phenomenon was caused largely
by companies’ increased reliance on global supply chains, which has allowed
companies to tap specialized manufacturers from other countries to produce
high-performance parts. Over the long-run, this reliance shifted production and
often innovation overseas as well.</p>
<p>As a recent MIT study points out,
innovation occurs not only at the point of invention, but at every stage of
product development and delivery. This was the rationale behind the iconic Bell
Labs where engineers co-located beside technicians to develop and continually
improve production processes for telecommunications equipment. Or at companies
like DuPont, where partnerships between design and production specialists led
to an affordable manufacturing process for Kevlar in 1970 – finally making the material marketable, five years
after it had been invented. &nbsp;</p>
<p>On
the other hand, when a company’s inventors and design engineers are separated
from the production process, that company may be hindered in its abilities to
improve products or develop new goods and services. This separation is why
scholars now suggest that certain industries created in the United States – such as flat panel displays and certain consumer
electronics – have moved entirely offshore. In
some of these cases, manufacturers built assembly facilities in Asia which made
it attractive for parts suppliers to re-locate there as well. Soon, entire
supply chains were migrating out of the United States, and we lost our ability
to lead in the innovation and production of these types of products.</p>
<p class="Default">The NNMI will allow the United States to rebuild the dense
networks of capabilities that it lost during the past two decades of
manufacturing offshoring. Bringing large manufacturers, universities, and small
businesses together in institutes will help restore U.S. competitiveness in
manufacturing. This is critically important for boosting U.S. innovation and
exports, and it will facilitate middle class job growth. Indeed, the
manufacturing sector accounts for 70 percent of U.S. private-sector research
and development, 70 percent of patents, and the vast majority of U.S. exports.
Manufacturing jobs provide a key pathway into the middle class, with workers
earning between wages and benefits 17% more than their counterparts in other
sectors.</p>
<p>Catalyzing industry to strengthen American manufacturing
capabilities has worked for us in the past. Twenty-seven years ago, the Reagan
Administration sounded the alarm over a crisis in the semiconductor industry.
We were fast losing market share and would eventually lose our entire
industry if nothing was done.</p>
<p>For
the Department of Defense this posed a national
security risk. As a result, SEMATECH was born; the Pentagon invested $500
million into a small consortium of U.S. companies, allowing industry rivals to
collaborate in road-mapping the future of semiconductor chip technology and to
develop the manufacturing processes necessary to mass produce those chips.
Instead of each semiconductor manufacturer spending money to design its own
equipment in isolation, SEMATECH provided a forum for companies to work
together and develop common standards for next generation chip manufacturing
technology. </p>
<p>Just this last July, I visited SEMATECH at its new home on the
seven-year old campus of the College of Nanoscale Engineering of the State
University of New York (SUNY) in Albany, New York. SEMATECH has not received
federal matching funding
for over fifteen years, having evolved into a self-sufficient enterprise - and
having grown to include over a hundred international
players.&nbsp; </p>
<p>What I found particularly fascinating were some of the College’s
other partners. Unlike SEMATECH, which focuses on research into manufacturing
processes, the College’s other partners are helping transition&nbsp; additional
emerging research into actual manufacturing capabilities – in the same vein
that we are proposing for NNMI. One such initiative is the Global 450
Consortium – an
effort to make the surface on which we make chips – called wafers – bigger.
This could bring down costs and add more functions to our smartphones, tablets,
and car electronics.</p>
<p>This consortium, started up just in the last two years, is
comprised of IBM, Intel, Samsung, TMSC, and Global Foundries as well as the
State of New York. Each company recognized this effort was high risk, extremely
expensive, and beyond the capability of a single company. But, on this great
college campus, these companies are now pooling resources and sharing risk to
try to develop manufacturing equipment together. By collaborating they advance
the “pre-competitive” technology that can be inserted into final products that
are more proprietary. Because this work goes on here, the innovation, company
growth, and high tech jobs are here. Additionally, students at various levels
on the campus will have an opportunity to train on how to use this equipment
and develop new production techniques. The College itself functions as a
trusted third party, not only providing the space for conducting collaborative
research, but also managing complex arrangements for sharing intellectual
property. The College is in effect coach, convener, and arbiter – and has
developed a successful model for protecting companies’ proprietary interests.</p>
<p>The innovations taking place at this facility are breathtaking. So
much so, that semiconductor companies from around the world are investing tens
of billions of dollars to build factories in that region and creating thousands
of new jobs, just to be close to the College and tap the collaborative research
and scholars available nearby. In fact, just this year Global Foundries – the
second largest chip maker in the world – announced another $7 billion expansion
of its multi-billion dollar facility in neighboring Saratoga Springs.</p>
<p>Companies in this industry are flocking to the region because they
believe being a part of this industrial ecosystem is critical to their
long-term competitiveness; in turn they are building multi-billion dollar
complexes. This case shows what can happen when the government - whether
federal or state - provides initial seed funding, and helps convene industry
and university partners to collaborate in manufacturing research and workforce
training. In my view, this should be an inspiration for aspiring NNMI
institutes.</p>
<p>What is transpiring in upstate New York can and must take place
elsewhere around our country. The United States has long invested public
dollars in initial or basic research, and, in many industries, companies are
likely to invest in late-stage development – once a product has been proven and
a market is beginning to materialize. But what about that middle stage – when a
technology has been invented but there is no established process for scaling up
its production?&nbsp;&nbsp; </p>
<p>To lead the world in advanced manufacturing means to lead not just
in initial invention but all the way through production. Other countries,
particularly in Asia and Europe, have been investing billions of dollars in
such “technology transition” for decades, and have their own programs analogous
to NNMI. It is time to find a uniquely American solution to the challenges
associated with moving technology from lab to shop.&nbsp;&nbsp; </p>
<p>A uniquely American solution must be led
by the private sector. The Administration relied on the advice of 1,700 members
of industry and academia who provided inputs into the AMP report. The NNMI
program will eventually be wholly owned and operated by companies and universities
– not the Federal Government. However, as
evidenced by history, these endeavors will require seed funding to make it
possible for companies, universities, community colleges, nonprofits, and
others to join a manufacturing innovation consortium. Our proposal is for the
government to provide that “patient capital” for about five to seven years, and
then allow an institute to operate on its own. In essence, the public
investment is in the U.S. innovation ecosystem –
to create the space for industry and academia to solve industry-relevant
problems. In the process, the institute will need to prove that it can and will
be self-sustaining long after the government ends its investment, and that it
can meet critical market demands. There is indeed a demand for this sort of
program. I have seen it firsthand in Albany. But I can assure you, there is a
hunger for these institutes all across the country. This is evidenced by the
great interest and robust competitions for new manufacturing innovation
institutes being held by the Departments of Defense and Energy right now.</p>
<p>As members of this committee are aware,
last year, the Department of Defense led a competition to establish a pilot
institute. The institute focuses on additive manufacturing and 3D printing – an area of great importance both to the Armed
Forces and the broader economy. This technology is literally something out of
“Star Trek” – allowing individuals to use a
computer to design intricate structures and shapes traditional manufacturing
processes simply could not make, and then “printing”&nbsp; or “beaming” them
layer-by-layer into existence with unprecedented precision.</p>
<p>The Air Force and Navy want to use this
technology to build high-performance aircraft and engine parts. The Army and
Defense Logistics Agency might use this technology to have instant access to
spare parts in-theater, when combat vehicles break down, or to recreate
replacement parts that have been out of stock for decades. And in the
commercial market, one can conceive of virtually endless applications for these
tools – ranging from automotive and medical
device production to fashion and apparel. These sophisticated and expensive
production machines are far from perfect – and
the institute is a big part of making them better. It is also important to
develop the standards for 3D printed parts, training programs, and the skilled
workforce needed to support new businesses. Improvements in these production
machines are spilling over to consumer markets, where inexpensive printers for
schools and homes are rapidly expanding. But much remains to be done to bring
the technology fully into the mainstream.</p>
<p>Moreover, if the United States is going
to be a global leader in advanced technologies, such as 3D printing, we are
going to need to bring all of our leading industry and university resources to
bear. We need to recognize that the rest of the world is not sitting on the
sidelines. I assure you, many other countries are investing heavily in 3D
printing as well as a host of other advanced manufacturing technologies. We
need to get this right to remain globally competitive.</p>
<p>Fortunately, there is high demand in the
United States to do just that.</p>
<p>From what I am told, competition was
fierce for the pilot institute. In the end, the government put $30 million on
the table, and the winning consortium matched this sum with an additional $40
million. That money is going towards funding labor, equipment, and applied
research projects. The pilot institute was formerly known as the National Additive Manufacturing Innovation
Institute, and was recently renamed America Makes. Its headquarters is now open
for business in Youngstown, Ohio. Consortium members included, among others,
Northrop Grumman, Honeywell, IBM, Timken, and RTI International; university
participants included Case Western, Carnegie Mellon, Penn State, and Youngstown
State – as well as Marshall University in your
home state, Mr.&nbsp;Chairman. And membership continues to grow. While many
feel the future promise of this technology is certain to be astonishing, what
is far from certain is where the global innovation hub for 3D printing and
additive manufacturing will be located. The mission of our pilot institute is
to ensure this hub is in the United States.&nbsp; </p>
<p>But what exactly happens at an
institute?</p>
<p>The answer is: “A lot.” Industry members
are crafting detailed roadmaps of their technology needs, collectively defining
milestones and then developing strategies to meet those goals. Institute
members are collaborating on applied research projects, developing facilities
to evaluate nascent technologies and improving equipment and processes for
unproven technology to be scaled up to production. By using shared facilities,
manufacturers can pool their risk, and drive down the cost of
commercialization. Working with university researchers and design engineers,
manufacturers can accelerate the insertion of these critical technologies into
mainstream manufacturing. Through this process, institute members are
establishing new business networks, coordinating their actions, and redefining
supply chains and business practices. In particular, institutes offer
opportunities for small and medium-sized enterprises to enter these supply
chains and access equipment they ordinarily would not be able to afford to use.
Finally, community colleges and universities are training new generations of
workers on cutting edge technology available at the institute and establishing
pipelines for U.S. employers to hire skilled workers. By engaging with colleges
and universities, the institutes will both incent and support educators to
assure the knowledge and skills of our workforce – building additional science,
technology, engineering and mathematic (STEM) career pathways for youth and
adults. This aspect of the institutes will be essential to keep the manufacture
of new products from moving offshore. </p>
<p>The institute itself provides
facilities, equipment, and software for collaborative research. It also helps
arrange intellectual property sharing, both to advance technology breakthroughs
as well as protect members’ proprietary rights. As illustrated below, institute
members can range from research universities and national laboratories to community
colleges; large manufacturing companies to small and medium-sized enterprises
and start-ups; and state and local governments to economic development
organizations.&nbsp; </p>
<p>Ultimately, the Administration envisions
a collection of these institutes forming a network. Institutes will thrive not
only from collective action within their own consortia, but also through
cross-pollination across industries. All parties
involved in these institutes will advance competitiveness in their respective
technology fields as well as more broadly support our economic and national
security interests.&nbsp; </p>
<p>The pilot institute
currently underway has demonstrated the great demand for these capabilities
among all of these actors. Applied research projects co-financed by the government,
industry, and universities are well-underway. And the institute continues to
see its membership and private investment rise. For example, in May of this
year, Siemens announced a $440 million&nbsp; in-kind grant to Youngstown State
University to help train the next generation of 3D printing manufacturers. I am
eager to see how it matures over the next several years.</p>
<p>Meanwhile, the Departments
of Defense and Energy have launched three more competitions. The Pentagon
solicited proposals for consortia focused on lightweight and modern metals as
well as digital design in manufacturing. Energy’s new institute will focus on
enabling more powerful, efficient, and more cost effective power electronics.
These are critical endeavors, and we are eagerly awaiting the announcement of
competition winners. These new institutes, like the pilot, will continue to
help us hone this model and, more importantly, address critical manufacturing
technology needs for our country.</p>
<p>In sum, by developing these institutes in partnership with
industry and academia, the government will address two critical issues industry
leaders say they cannot solve without assistance. First, it will
incentivize companies and universities to work together in promoting innovation
and production here at home. Second, it will help companies within an industry
ensure that U.S. supply chains are effective and well-integrated.</p>
<p>In order to enable this program to reach its full potential,
Congressional action is required to authorize this program and provide the
necessary funding. The “Revitalize American Manufacturing and Innovation Act of
2013,” sponsored by Senators&nbsp;Blunt and Brown, would authorize Commerce to
award funds to assist in planning, establishing, or supporting the centers for
manufacturing innovation, which will constitute the network. It would also
establish a National Office of the Network for Manufacturing Innovation Program
within the National Institute of Standards and Technology to oversee and carry
out the program. These are both important steps in meeting the President’s call
for the NNMI.</p>
<p>Although the institutes
being developed under the leadership of the Departments of Defense and Energy
under existing authorities are important, at present we have no federal program
exclusively focused on identifying emerging technologies with broad potential
impact and bringing together companies in associated industries to improve
technology transition. Instead, we are meeting our nation’s demand by tapping
existing federal programs. By relying on these mission agencies, we are
confining the institutes’ topics to areas that are relevant primarily to these
agencies’ missions, which exclude many other topics with significant potential
impact on manufacturing.</p>
<p>Ultimately, these institutes
need to be driven from the bottom up; we need to empower U.S. industries to
identify where their comparative advantage lies and where the need is greatest
to collaborate in manufacturing innovation institutes. Our role should be to
support those decisions, help them underwrite risk when we can, and thus help
unleash the full might of the American innovation economy.</p>
<p>This question was posed to industry
in five different public events along with a request for public comment – “What
are the topics that are most important to industry, appropriate for an
institute, and that industry would co-invest in?”&nbsp; The response was
overwhelming – 135 topics. Which should be established? Let consortia teams put
together proposals based on market needs – not a federal agency’s requirements.
Awards will be made through merit-based competition that selects the best
business case to receive start-up funding and become part of the network.
Additionally, we will continue to rely on the private sector, through forums
such as the Advanced Manufacturing Partnership, to ensure NNMI meets industry
needs and advances American competitiveness.</p>
<p>In
fiscal year 2014, the President’s Budget has called for $1 billion for up to 15
institutes built over multiple years to jumpstart the vision shared by
AMP,&nbsp; NAM, and so many other leaders across industry. This proposed
multi-year funding will provide the consortia the certainty needed for members
to commit to fully matching the government contribution. As the concept has
developed, so has the demand. In fact, the Administration believes the network
could ultimately reach a total of 45 institutes. As a comparison, Germany has 60 <em>Fraunhofer</em>
Institutes – similar in concept to NNMI – despite having an economy a fraction of the size
of ours. It is critically important that we make the NNMI a reality. The
approach in the Brown-Blunt bill is an important step in advancing this
conversation.</p>
<p>I look
forward to working with this committee to move this important legislation
forward.&nbsp; </p>
<p>Today,
manufacturing remains critical for both economic and national security. As I
discussed at the outset, addressing the challenges facing America’s
manufacturing sector is absolutely essential both for our ability to employ
skilled workers as well as for our ability to maintain our competitive edge in
the world economy.</p>
<p>Innovation
is America’s comparative advantage. It is the lifeblood of advanced industries
that are fundamental to our nation’s future –
from nanomanufacturing to cyber-technology. But to truly stay out front in
these exciting new fields, it is not enough to invent new products – we can and we must strengthen the ability to make
these products too. Establishing the National Network for Manufacturing
Innovation is essential to doing just that. I look forward to working with you
to realize this vision.</p>
<p>This
is just one piece of the Administration’s manufacturing agenda; I look forward
to returning to talk with you about other exciting initiatives in the near
future. </p>
<p>Thank you for the opportunity to appear
before you today. I look forward to answering your questions.</p>Secretary SpeechesOffice of the SecretaryWed, 13 Nov 2013 21:35:00 +0000mkruger@doc.gov16081 at http://www.commerce.govRemarks at American-Turkish Society Galahttp://www.commerce.gov/news/secretary-speeches/2013/11/07/remarks-american-turkish-society-gala
<p class="press-release-header"><strong>AS PREPARED FOR DELIVERY</strong><br />Thursday, November 7, 2013<br /><strong>CONTACT OFFICE OF PUBLIC AFFAIRS</strong><br />202-482-4883</p><p><strong>Commerce Secretary Penny Pritzker</strong><br /><strong>Remarks at American-Turkish Society Gala</strong></p><p>Thank you, Chairman Dincer, Chairman Koprulu, and Mr. Ciliv. &nbsp;<br /><br />It is also an honor to share the stage with Minister Simcek, who has drawn widespread praise for his leadership.&nbsp;<br /><br />For example, I heard that he was recently recognized as Finance Minister of the Year by Emerging Markets magazine. &nbsp;Congratulations.<br /><br />I have had the opportunity to go to Turkey on several occasions – most recently last year. &nbsp;<br /><br />I had the opportunity to meet many of your business leaders including Chairman Dincer to discuss investments in Turkey. &nbsp;Of course, that was before I took my current job. &nbsp;<br /><br />Since we are here at the New York Stock Exchange, I should begin by noting that it is no surprise to me that Turkey’s financial industry is growing. &nbsp;And the U.S. Government is proud to be actively sharing best practices and supporting Turkish leaders as they build Istanbul into a global financial hub.<br /><br />Of course, our commercial and economic ties are blossoming in many additional ways.<br />For example, just last week, a delegation of more than 20 Turkish business leaders came to Washington for the Commerce Department’s first-ever SelectUSA Investment Summit. &nbsp;<br /><br />Our message was – and is – clear. &nbsp;We welcome investment from Turkish companies into the United States.<br /><br />•<span> </span>This year, Ozkan Steel announced its plans to invest $150 million in a plant in Louisiana to support the shipbuilding industry…•<span> </span>and Borusan Mannesmann broke ground on a new Texas facility to manufacture pipes for shale gas production – also valued at $150 million.<br /><br />At the same time, U.S. businesses continue to invest in Turkey. &nbsp;<br />•<span> </span>Dow, 3M, and General Electric have all recently made significant Turkish investments.<br /><br />All told, more than 1,000 U.S. firms of all sizes have offices in Turkey. &nbsp;<br /><br />I am confident that even more American businesses will look to do business in Turkey due to the country’s growing economy – an economy in which net-growth-per-capita has more than tripled in just a decade.<br /><br />As we invest more in each others countries, our trade relationship has also flourished. &nbsp;<br /><br />In fact, bilateral trade has increased by 75 percent since the Obama Administration began in 2009. &nbsp;It now stands at about $20 billion dollars.<br /><br />Looking forward, we can and should uncover even more ways to build on our burgeoning commercial and economic ties.<br /><br />However, to take our relationship to the next level – and to achieve Turkey’s 10 by 23 goal – we must address tough issues.<br />As a business leader for 27 years, I believe that we must focus on listening to CEOs in both countries in order to address our challenges.<br /><br />By deeply and consistently engaging with our business leaders, we in government can identify, understand, and overcome the barriers to further bilateral growth.<br /><br />Already, our private sector leaders are raising awareness of the best ways we can unleash the full potential of our relationship:</p><ul><li>They are asking for more efficiency and transparency in the government procurement process.</li><li>They want us to resolve regulations and market access issues, including those in industries like agriculture and pharmaceuticals.</li><li>They need strong and enforceable intellectual property protections – including patents and copyrights.</li><li>And they know that providing genuine incentives for companies to invest in Turkey is a much better approach than requiring offsets that distort trade.</li></ul><p>Working collaboratively across our public and private sectors, we can effectively address all of these issues and more.<br /><br />On that note, I am confident that we can make substantial progress through the work we are doing in the Framework for Strategic Economic and Commercial Cooperation, or FSECC. &nbsp;<br /><br />As some of you know, this is the United States and Turkey’s bilateral cabinet-level dialogue on economic cooperation. &nbsp;<br /><br />Already, the FSECC has played an important role in bolstering our overall trade relationship – and in promoting more cooperation in areas such as energy-efficiency and transportation infrastructure.<br /><br />We are hoping to hold the next meeting in Washington in early 2014.&nbsp;<br /><br />I have asked my team to find ways to ensure that the meeting is effective and outcomes-driven.&nbsp;</p><p>I also look forward to hearing new recommendations from the U.S.-Turkey Business Council – an impressive group of top business leaders from both countries.<br /><br />I want to emphasize that you in the private sector have an important role to play in encouraging our governments towards greater commercial access and a true level playing field.<br /><br />Ultimately, I want to hear more stories like General Electric’s partnership with Tulomsas, the Turkish railcar manufacturer. Through that partnership, locomotive kits from Pennsylvania are being assembled in Turkey and then re-exported to Central Asia and beyond.<br /><br />I also want to hear about more American businesses that are bringing their experience to the table to help Turkey continue to thrive. &nbsp; &nbsp;For example, I know that some U.S. firms are interested in serving as partners on major Turkish projects such as Istanbul’s third airport. &nbsp;<br /><br />Those are great examples of the kinds of mutually-beneficial relationships that will help both Turkey and the United States prosper in the 21st century.&nbsp;<br /><br />These blossoming ties create a long-term foundation of political and economic friendship.</p><p>Finally, I will just note that this past May, President Obama and Prime Minister Erdogan re-affirmed their commitment to our bilateral relationship by launching the U.S.-Turkey High-Level Committee.<br /><br />This Committee will be an important complement to our work with the FSECC. &nbsp;Among other things, this Committee will keep Turkey informed on developments with the Transatlantic Trade and Investment Partnership – which I know Turkey has expressed concerns about.<br /><br />And I should note that key reforms in some of the areas I have mentioned will prepare the way for expanded U.S.-Turkish trade and investment, no matter what legal framework for managing that relationship we ultimately develop.<br />Let me close by saying that there is a common theme being repeated around the Commerce Department. &nbsp;<br /><br />Our message is that America is Open for Business.<br /><br />I think that the community here tonight has a unique opportunity to show that we share common values, particularly when it comes to commerce.<br /><br />Let’s send a clear message to the world that both America and Turkey are Open for Business.<br /><br />That’s the message that the world heard here at the New York Stock Exchange back in 2000, when, for the first time, a Turkish company represented by the letters TKC (Turkcell) appeared on the screens.<br /><br />The Golden Age of U.S.-Turkish relations is dawning– and we have only scratched the surface of our potential.<br /><br />Thank you again for inviting me to be here. &nbsp;I look forward to building the American-Turkish friendship in the months and years ahead.</p>Secretary SpeechesAmerican-Turkish SocietyBusiness International tradeInvestmentSecretary of Commerce Penny PritzkerFri, 08 Nov 2013 01:30:00 +0000ksullivan@doc.gov16069 at http://www.commerce.govRemarks at World Business Chicago, Chicago, Illinoishttp://www.commerce.gov/news/secretary-speeches/2013/11/06/remarks-world-business-chicago-chicago-illinois
<p class="press-release-header"><strong>AS PREPARED FOR DELIVERY</strong><br />Wednesday, November 6, 2013<br /><strong>CONTACT OFFICE OF PUBLIC AFFAIRS</strong><br />202-482-4883</p><p><strong>Commerce Secretary Penny Pritzker</strong><br /><strong>Remarks at World Business Chicago, Chicago, Illinois</strong></p><p>Thank you, Rahm. It is great to be back in Chicago.</p><p>As you may have heard, I moved to D.C. for my new job. But I will admit that I snuck out of my office for an hour on Monday afternoon to go to the White House – because President Obama invited the Blackhawks to celebrate their Stanley Cup win. “You can take the girl out of Chicago. . . .” &nbsp;</p><p>I have deep respect for the business leaders here, my many friends who are your members, as well as the organization, World Business Chicago. You are doing so much to make Chicago more innovative and competitive. &nbsp;</p><p>I look forward to our discussion, but first I want to reflect on what we know: GDP is at an all-time high. Our stock market has passed pre-recession highs. Our exports are at all-time records–hitting $2.2 trillion in 2012, up $600 billion since 2009. Our housing market is rebounding. And businesses have created 7.6 million jobs in the past 43 months – including half-a-million jobs in manufacturing. This progress reflects the strength and resilience of firms like yours.</p><p>During my first few months as Secretary, I was in 13 states and heard from hundreds of CEOs and business leaders across the country. What did I learn? &nbsp;That businesses have confidence in their products and services and in their overall ability to compete.</p><p>We know that CEOs want certainty–certainty that Congress will stop manufacturing crises. It is clear that the shutdown and the debt limit brinksmanship hurt our businesses, our economy, and job creation. These self-inflicted wounds must stop. Instead, our country needs to turn its focus to the ways we can strengthen our economy and create jobs. The Obama administration is focused on growth and setting the conditions for your firms to prosper.</p><p>I want to briefly mention three areas–infrastructure, skills, and R&amp;D. &nbsp;Not surprisingly, these areas are also mentioned in the Plan for Economic Growth and Jobs that World Business Chicago wrote for the City.</p><p>First, it is clear that we need to invest more in our infrastructure. Under the President’s leadership, we have improved 350,000 miles of roads, 6,000 miles of rail, and 20,000 bridges. However, we have deferred trillions of dollars in infrastructure investment. &nbsp;The American Society of Civil Engineers gives our country a D+ grade for infrastructure.</p><p>With interest rates still low, the president wants us to put more construction crews back to work building and modernizing our transportation hubs and links.The long-term benefits are clear: more efficient movement of goods, stronger exports, and more competitive businesses overall. Key concerns here in Chicago revolve around roads and rails, as well as fortifying our digital infrastructure.</p><p>For our part, the Commerce Department has deployed more than 100,000 miles of broadband since 2009. And I know that Mayor Emanuel is championing efforts to lay more fiber optic cable throughout the city. In sum, we need it all–from bridges to broadband.</p><p>Secondly, our country needs more workers with the right skills. As you know, I was deeply involved in education and workforce issues here in Chicago. &nbsp;</p><p>When I was on the school board, we launched five high schools focused on STEM education in partnership with IBM, Microsoft, Cisco, Motorola, and Verizon. That effort is important because we know that STEM-related jobs are growing three times as fast as others, and our children deserve to be prepared for those opportunities.</p><p>On a broader scale, the key to fixing the skills problem is to bring all of the local stakeholders together to ask: What do our employers need in their workforce? I believe that businesses need to be more active in working with training partners to develop meaningful curricula and broadly-recognized, stackable credentials. Many firms around the country are stepping up to the plate.&nbsp;</p><p>I am pleased to say that Labor Secretary Tom Perez and I are working together closely on this issue to help our businesses have the workforce they need to grow our economy. And because we know that a thriving private sector creates broad economic opportunity.</p><p>Let me just mention one more area related to our workforce–because so many CEOs have mentioned it to me: Immigration reform–I have yet to meet a business leader against it. The fact is, about 40 percent of the Fortune 500 were started by first- or second-generation Americans. And nearly one-fourth of the U.S. workforce is foreign-born.</p><p>The immigration bill that passed the Senate will expand temporary and high-skilled immigration programs–programs that businesses need now. Plus the bill provides a green card to masters and Ph.D. students who graduate with STEM degrees.</p><p>We need folks in Washington to wake up to the fact that we are in a global competition for talent. It’s mind-boggling to think that Chicago universities attract some of the world’s brightest students, give them a top-notch education, and then we force these potential innovators and job creators to leave. That’s unacceptable.</p><p>With projections saying that immigration reform will increase real GDP by about $1.4 trillion in 2033, this should be at the top of our country’s to-do list. I encourage you to make your voice heard on this issue.</p><p>Finally, our country needs more federal support for R&amp;D and innovation. Every competitive country in the world understands the need to publicly invest in R&amp;D to create a broad base for potential breakthroughs. The President and I believe that we need to double federal funding for R&amp;D, helping reverse the erosion we’ve seen.&nbsp;</p><p>Consider this: As a percentage of all basic research funding, federal funding has dropped from 70 percent in 1980 to about 57 percent in recent years. We need to fix that to ensure that more game-changing ideas can move from the lab to the marketplace.</p><p>As we move to our discussion, I would be happy to talk about infrastructure, skills, immigration, R&amp;D, or other topics, from the need to reform our uncompetitive and overly-complex corporate tax system, to the need for spurring more American manufacturing, which I will testify about next week on Capitol Hill, to building on our momentum in areas such as exporting and attracting inbound investment. Overall, both the president and I believe that we can promote growth and jobs while also being fiscally responsible.</p><p>Let me close my opening comments with a commitment. I believe that we at the Commerce Department need to hold ourselves to the same high standards that your businesses do. We should continue to provide a strong ROI for America’s companies, communities, and taxpayers–including those here in Chicago. And we should be driven by outcomes, just like any business with a bottom line.</p><p>My team is working every day to foster that culture throughout government. Together, we must continue to send a message loud and clear that America–and its great cities like Chicago–are Open for Business. Thank you. I look forward to our conversation.</p>Secretary SpeechesBusiness EntrepreneurshipInfrastructureInvestmentJobsR&DSTEMWorld Business ChicagoSecretary of Commerce Penny PritzkerWed, 06 Nov 2013 19:30:00 +0000ksullivan@doc.gov16067 at http://www.commerce.gov